3 STEP 1, Null and Alternate HypothesesThe Null Hypothesis is what we assume.We will try to reject this assumption (i.e., reject the Null) with significant evidence.TIP: Always put an equal sign for the Null.Fill out the Null Hypothesis AFTER filling out the Alternate Hypothesis.

4 STEP 1, Null and Alternate HypothesesThe Alternate Hypothesisis what we want to show.This comes from the question in the paragraph.In filling out the Alternate Hypothesis, we are limited to three different inequality signs to choose from:Less ThanGreater ThanNot Equal ToNOTE: “a” for “alternate”

5 STEP 1, Null and Alternate HypothesesBoth the Null and Alternate Hypotheses are statements about the POPULATION.Therefore, the symbols that you use will be eitherpopulation proportion

6 STEP 1, Null and Alternate HypothesesBoth the Null and Alternate Hypotheses are statements about the POPULATION.Therefore, the symbols that you use will be eitherpopulation proportionorpopulation mean

7 STEP 1, Null and Alternate HypothesesWhile reading the question in the paragraph, you will choose the inequality for the Alternate Hypothesis which best represents what the question wants to show.Once an inequality sign is chosen, the entire hypothesis test takes on a nickname.These nicknames tell you which tail you shade in the bell-shaped curve in STEP 4.TIP: During STEP 4, remember to look back at the inequality in the Alternate Hypothesis for shading.“Left-tailed”“Right-tailed”“Two-tailed”

8 STEP 1, Null and Alternate HypothesesRecall that you will fill out the Alternate hypothesis first by reading the question in the paragraph and seeing what it is that you want to show.For example, if you want to show that“…the percentage of all college students that own a cell phoneis less than 99%.”then fill out the Alternate Hypothesis as follows.

9 STEP 1, Null and Alternate HypothesesRecall that you will fill out the Alternate hypothesis first by reading the question in the paragraph and seeing what it is that you want to show.For example, if you want to show that“…the percentage of all college students that own a cell phoneis less than 99%.”then fill out the Alternate Hypothesis as follows.

10 STEP 1, Null and Alternate HypothesesThe comparison number that you put into the Alternate Hypothesis will then be copied into the Null Hypothesis.So we will assume that the percentage of all college students that own a cell phone is equal to 99% until STEP 5.During STEP 5 we hope to reject this assumptionTIP: The Alternate Hypothesis is not referenced again until STEP 6 (the conclusion).

11 STEP 1, Null and Alternate HypothesesRecall that you will fill out the Alternate hypothesis first by reading the question in the paragraph and seeing what it is that you want to show.For example, if you want to show that“…the average cover price for all comic bookspublished in 2012is greater than $2.”then fill out the Alternate Hypothesis as follows.

12 STEP 1, Null and Alternate HypothesesRecall that you will fill out the Alternate hypothesis first by reading the question in the paragraph and seeing what it is that you want to show.For example, if you want to show that“…the average cover price for all comic bookspublished in 2012is greater than $2.”then fill out the Alternate Hypothesis as follows.

13 STEP 1, Null and Alternate HypothesesThe comparison number that you put into the Alternate Hypothesis will then be copied into the Null Hypothesis.So we will assume that the average cover price for all comic books is equal to $2 until STEP 5.During STEP 5 we hope to reject this assumptionTIP: The Alternate Hypothesis is not referenced again until STEP 6 (the conclusion).

14 STEP 2, Significance LevelState your Level of Significance.This is the comfort level of what you would call a “rare event.”TIP: This is usually 1% or 5%.TIP: The Significance Level is not used again until Step 5 where we compare it against the P-value.

17 STEP 4, Part 1, Test StatisticStep 4 is done in two parts, and each part is a calculation.Part 1: Calculate the TEST STATISTIC:z-score for proportionsort-score for means

18 STEP 4, Part 1, Test StatisticNote that and and numbers come from the Null Hypothesis The subzero in the notation is to remind you that you are assuming these values from the Null Hypothesis.

19 STEP 4, Part 2, P-valuePart 2: Use the Test Statistic to calculate the P-value (Probability value).The P-value will be the shaded area in the curve.TIP: Look back at the Alternate Hypothesis in STEP 1 to see where to shade (left-tailed, right-tailed, or two-tailed).You will shade the area of the tail after where the Test Statistic is (and its mirror image if “Two-Tailed”) as indicatedfrom

20 STEP 5, To reject or not to reject the Null HypothesisNow that you have calculated the P-value from STEP 4, compare it with the Level of Significance from STEP 2.If the P-value < α then the probability of your sample occurring is small.In other words, your sample is “rare”, or “statistically significant” enough to reject your Null Hypothesis

21 STEP 5, To reject or not to reject the Null HypothesisIf the P-value > α then the probability of your sample occurring is more common.In other words, your sample is “NOT rare”, or “NOT statistically significant” enough to reject your Null Hypothesis

22 STEP 6, The conclusionIn STEP 6 you state your conclusion in real-life terms.If, from STEP 5, the P-value < α then there is significant evidence to concludeIn other words…There is significant evidence to conclude (whatever the question in the paragraph wanted to show).

23 STEP 6, The conclusionIf, from STEP 5, the P-value > α then there is NOT significant evidence to concludeIn other words…There is NOT significant evidence to conclude (whatever the question in the paragraph wanted to show).